Shares of French manufacturer of military aircraft and business jets, Dassault Aviation, rose as much as 10% in morning trading after it reported adjusted net sales rising 46% year-on-year to 4.2 billion euros ($4.8 billion) in the first half of 2026.
Thales and Indra stocks rose as much as 5% each after the companies reported half-year earnings early Thursday, while the pan-European blue-chip index Stoxx 600 traded 0.6% lower.
Thales, Infra and Dassault shares this year.
While sales were broadly in line with expectations at 10.9 billion euros, adjusted earnings before interest and tax came in 4% ahead of consensus at 1.37 billion euros.
“Amid an increasingly uncertain geopolitical context, Thales’ products and solutions underpinned by security, sovereignty and innovation once again demonstrate their relevance and appeal on a global scale,” CEO Patrice Caine, said in a statement.
The earnings come as governments are ramping up defense spending to meet NATO targets and deter Russian aggression.
Advanced payments boost cash flow
Thales’ free cash flow was “particularly strong,” boosted by working capital tailwinds, like advanced payments, Jefferies said.
Similarly, Dassault Aviation’s cash generation was a “standout,” boosted by advances for its Falcon aircraft, the analysts noted in a separate note to clients on Thursday. The analysts also suspect “strong Rafale advances were received” in the first half of the year, and noted “solid delivery momentum.”
It comes as the narrative around defense companies is shifting from one of growing order books to the ability to ramp up production to meet rising demand quickly.
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